China’s reign as the largest luxury market in Asia and the second-largest in the world is undisputed.Over the last five years, South Korea has also emerged as a wealthy contender in the luxury sphere, leveraging its cultural exports and online prowess to achieve some of the highest average order values globally. But the question on everyone’s lips remains: Is India the next big player in the Asian luxury market?Louis Vuitton was a trailblazer, entering the Indian market in 2002 with its store in Delhi. Gucci, owned by Kering, initially dipped its toes in 2007 through a franchise but swiftly shifted to direct entry via a joint venture in 2009. And it was Richemont’s bold move into India’s ‘single brand’ retail space in 2014 with a $5 million investment signalled the beginning of a steady influx of international luxury brands establishing their foothold in the country.The Dior Fall 2023 show in Mumbai last Autumn, helmed by Maria Grazia Chiuri, is a testament to India’s rising prominence. The luxury market in India is expanding rapidly, and brands are keen to capitalise on this boom.Indian luxury brands like Sabyasachi, Abu Jani Sandeep Khosla, and Manish Malhotra are gaining popularity both domestically and internationally, attracting a global clientele and marking a new era of Indian luxury.India’s pace of growth demands constant vigilance and strong local partnerships. Brands risk underperformance if they fail to keep their finger on the pulse, both physically and digitally.In an era of diversifying populations, and with social media empowering more people to find a voice, ensuring your product and offer are culturally sensitive has never been more important.The new luxury consumersIndia’s digital transformation is on a meteoric rise. From UPI payments to online education, Indians are embracing a digitally dominated lifestyle. This shift places a premium on personalisation, with the young Indian consumer valuing self-expression more than ever. Brands must move beyond lip service and excel in execution to stay relevant, challenging traditional thinking and aligning with new paradigms.This means embracing diversity, redefining exclusivity, committing to sustainability, engaging authentically in the digital space, and facilitating personal storytelling through brand narratives at every touchpoint.The rise of premium beauty, scents, and skincareWith China’s beauty market facing challenges, India is emerging as the new growth centre. Sephora’s partnership with Reliance Beauty & Personal Care last November exemplifies this shift. NielsenIQ data shows a 7.1 per cent year-over-year increase in India’s beauty sales as of Q3 2023, with fragrance sales jumping 17.6 per cent and skincare sales up 8.6 per cent. Beauty giants like L’Oréal are investing in Indian beauty brands, and Sugar Cosmetics secured funding from LVMH-owned L Catterton.Obstacles as enrichment opportunitiesDespite the global luxury market’s expected growth, advanced economies like the US remain stagnant, and China faces macroeconomic headwinds. India, however, continues to shine. Mukesh Ambani’s luxury mall in Mumbai, housing brands like Balenciaga and Gucci, and SMCP’s partnership with Reliance to expand into India, highlight the country’s burgeoning luxury market.Is it India’s time?Victor Hugo famously said, “There is nothing more powerful than an idea whose time has come.” For luxury brands, India’s time is now. The country’s growing disposable income and changing consumer preferences make it a prime market for luxury goods. The accessible luxury market in India is set to experience a compound annual growth rate of 13-19 per cent from this year to 2029.Key factors driving this growth include:1. Rising Middle Class: India’s expanding middle class, with increasing purchasing power, is actively seeking luxury products and experiences.2. Favourable Demographics: India has a young population with a significant proportion of young consumers willing to experiment with luxury products and brands. The younger generation is more open to exploring international brands and is driving the demand for luxury goods.3. Untapped Potential in South India: Expanding into South Indian cities like Bangalore, Chennai and Hyderabad offers competitive advantages and growth opportunities, as South India’s markets are poised for a major transformation: It’s a $9.35 billion luxury market, making up a considerable part of India’s $24 billion market (as per Bain Report). A total of $3.14 billion is spent on Watches and Jewellery, marking the highest category-wise spending in South India, followed by Apparel & Footwear ($2.43 billion) and Cosmetics & Personal Care ($1.76 billion).Understanding cultural sensitivityIndia’s diverse cultural landscape requires brands to adapt their strategies. Understanding local preferences, consumer traditions and customs is crucial to establishing a brand successfully in the market.Localisation of products and tailored offerings are necessary. For instance, offering designs or collections that resonate with Indian heritage and aesthetics will create a stronger appeal and emotional connectivity. Partnering with Indian designers or artists, similar to how luxury brands collaborate with Chinese artists, can enhance cultural relevance and acceptance.In Mumbai’s Jio World Plaza, I had the privilege of joining Jean-Christophe Babin, CEO of the Italian jewellery house Bulgari, when he picked up the B.zero1 Kada bracelet, costing about $14,000, from a tray full of iconic jewels, at its store.“We are probably the only global jeweller to have Indian products such as the mangalsutra and the Kada. The mangalsutra sold out extremely quickly. We had to make it again,” he said, noting that Bulgari’s mangalsutra, costing more than $5000, is perpetually in high demand.Embracing such culturally significant products is a masterstroke for luxury brands looking to succeed in India. By tailoring offerings to resonate with local traditions and preferences, brands can navigate the complexities of the Indian market with the same finesse they applied in China, ensuring cultural sensitivity and relevance in their approach.Defining successThere’s a noticeable and worrying pattern: many brands continue to stumble on the same missteps they did when entering the Chinese market by building barriers to this crucial demographic. Brands, and their local partner, must challenge their traditional ways of thinking and align themselves with the shifting paradigms to stay relevant to the demanding and well-informed consumers, especially in a high growth market like India.This means embracing diversity, appreciating the new interpretation of exclusivity and personalisation, demonstrating genuine commitment to sustainability, engaging authentically and facilitating personal storytelling through brand storytelling consistently and across all consumer touch points.India’s luxury market is poised for a transformative journey. Is your brand ready to join the ride?